Tesla Compact in 2025.

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Tesla Compact model illustration.

Since Tesla doesn’t have a PR department, it is hard to get any news, official or not, about new and upcoming models and projects.

We are just at the mercy of what crazy Elon will say or post online, whether it is true or not.
We all know a smaller Tesla model is coming, and many of us expected to see something last year, which never happened. We heard the new Mexican factory that will build the car could be finished by the end of this year. We also heard the car could also be built in a new factory in India. We heard tons of stuff…

The latest bits of news we have are actually from Tesla suppliers, who have mentioned the code name for the upcoming compact model is “redwood”. Musk has apparently confirmed the new model will start production at the Texas factory in the second half of 2025, with production at the Mexican factory starting after. As well as another factory outside the US, which could be the Berlin factory, since a smaller model would be extremely popular in Europe. (The larger and more expensive Tesla Model Y has just become Europe’s best-selling car in 2023. Just imagine how popular a cheaper and smaller Tesla would be over there). Although Tesla is facing extreme competition in China, where they could also build a new model. And there’s that future factory in India. So who knows…

So far suppliers are mentioning a start of production in June next year, with a weekly output of 10 000 units. That would mean 540,000 units a year, a huge number that would immediately put the new model above the Toyota RAV-4, which is the best-selling “non-pickup truck” vehicle in the country. (followed by the Model Y).

I am not sure how quickly they expect to ramp up to this number, but this would mean a huge bump in production for Tesla.

Of course, a $ 25,000 Tesla sounds very attractive to many. We’ll have to see if it ends up as weird as the Cybertruck, which would be a liability. Or just something smaller and a bit more modern than the Model 3 & Y. And how much of the drastic cost-cutting will be obvious to the consumer?

No matter what, it will be very interesting and huge news when it comes out…

Conversation 3 comments

  1. I’m going to make a prediction.

    There will NEVER be a $25,000 Tesla EV. (Not in the U.S., anyway).

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